ASX Release. 10 September 2007 BJT SETTLES OSAKA EKIMAE NO. 4 AND NO. 3 PROPERTIES

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1 ASX Release 10 September 2007 BJT SETTLES OSAKA EKIMAE NO. 4 AND NO. 3 PROPERTIES Babcock & Brown Japan Property Trust (ASX: BJT) today announced the settlement of the acquisition of interests in Osaka Ekimae No. 4 and Osaka Ekimae No. 3 for a purchase price of 18 billion (approximately A$192 million). This represents a discount of 1% on the independent valuation of billion. The intention to acquire interests in these properties was announced on 27 August 2007, as part of a transaction comprising 28 billion (approximately A$299 million) of property acquisitions and an institutional placement. The remaining properties, with a combined purchase price of 10 billion (approximately A$107 million) and an average NOI yield of 5.2%, are on schedule to complete within the next two months. The Osaka acquisitions are funded predominantly by debt and partly from the proceeds of the fully underwritten institutional placement of 30 million units completed on 28 August Mr Eric Lucas, Managing Director of Babcock & Brown Japan Property Management Limited (BBJPML), the Responsible Entity of BJT, said We are very pleased to have settled on these acquisitions so soon after the recent placement. BJT s portfolio gains further geographic diversification through our first investments in Osaka, the largest city in Western Japan. Osaka Ekimae No. 4 and No. 3 are major office buildings in Umeda, the main central business district of Osaka. Adjacent to Umeda s main transport hub, with four rail stations and three subway stations within a five minute walk, these buildings are in a prime location. The Osaka office market is showing strong signs of growth: land prices and rents have improved significantly in the last 12 months and vacancy rates are at their lowest levels in over ten years. Osaka Ekimae No. 4 and No. 3 have the potential to deliver strong net operating income (NOI) growth as they are significantly under-rented (16% and 8% respectively) and have vacant space for lease up. Not only are these properties immediately accretive but the anticipated NOI growth should see the accretion improve over time.

2 The properties Attached to this release is an overview of each property. The key property statistics are as follows: Property Purchase price billion NOI yield on acquisition % NRA (sqm) Occupancy by area % Osaka Ekimae No % 13,625 96% Osaka Ekimae No % 8,387 86% Osaka Ekimae No. 4 is a 25 storey building located in the Osaka CBD. BJT s interest in this property comprises a condominium interest in eight floors (7,8,18 and 21 to 25), which is the largest individual ownership interest in the building. Osaka Ekimae No. 3 is a 34 storey building located immediately adjacent to Osaka Ekimae No. 4 in the Osaka CBD. BJT s interest in this property comprises a condominium interest in five floors (7,8,28,30 and 31), and this too is the largest individual ownership interest in the building. Both properties are connected to JR Osaka and other subway stations via a recently renovated underground shopping arcade which contains a number of retail stores and restaurants. Following the Osaka acquisitions BJT now has interests in 41 properties in Japan; 16 retail properties, 22 office properties and 3 residential properties. The total value of the BJT s portfolio stands at billion (approximately A$1.5 billion). Mr Eric Lucas, Managing Director of BBJPML, said, We are confident the Japanese acquisitions team will continue to secure sound additional accretive investments on behalf of BJT. In addition to the remaining 10 billion (approximately A$107 million) of property acquisitions announced on 27 August, BJT has a strong pipeline of acquisitions under various stages of due diligence. ENDS Investor & Media Enquiries: Eric Lucas Alison Carter Managing Director Investor Relations Phone: (Australia) Phone: (Japan) About Babcock & Brown Japan Property Trust

3 Babcock & Brown Japan Property Trust is a listed property trust with a strategy to invest into the real estate market of Japan. It currently holds interests in a portfolio comprising 41 office, retail and residential properties. The Responsible Entity of the Trust is Babcock and Brown Japan Property Management Limited, a subsidiary of Babcock & Brown. Asset management services in Japan are generally undertaken by Babcock & Brown Co., Ltd., which is also a subsidiary of Babcock & Brown. For further information please see our website:

4 Osaka Ekimae No. 4 The Property is a 25 storey building located in the centre of Osaka near JR Osaka station. It is connected to JR Osaka and other subway stations via a recently renovated underground shopping arcade which contains a number of retail stores and restaurants. Address 1-11, Umeda, Kita-ku, Osaka-shi, Osaka 1 minute from Kia-Shinchi station of JR Tozai line Sub-market Osaka CBD Property type Office KEY PROPERTY STATISTICS (JULY 2007) Acquisition summary Ownership interest* 100% Purchase price ( billion) 12.0 NOI yield 4.0% Year completed Aug 1981 PML 6.3% * BJT s interest in this property comprises a condominium interest in eight floors (7,8,18 and 21 to 25). BJT s interest is the largest individual lot in the condominium association. Independent valuation Valuer Hiro & Reas Valuation ( billion) 12.1 Direct capitalisation rate 4.4% Terminal yield 4.9% Discount rate 4.4% Property statistics Land area (sqm): 1,244 (14.7% of 8,439) NRA sqm(tsubo): 13,625 (4,121) Gross passing rent + CAM 16,707 Estimated gross market rent + CAM 20,000 Under-renting 16% Occupancy by area 96% Occupancy by income 96% TENANT SUMMARY Tenant name Tenant industry Lease type % of total rent Lease expiry date NHK Culture Centre Education SC % March 2008 Sumitomo Life Insurance Insurance SC 1 6.8% March 2008 Xymax Axis Real estate SC 1 5.8% March 2008 NTT Telecommunication SC 1 5.3% March 2008 Docomo Service Telecommunication SC 1 4.2% March 2008 Remaining tenants (48) 61.1% 1. Standard leases cancellable with six months notice

5 Osaka Ekimae No. 3 The Property is a 34 storey building located immediately adjacent to Osaka Ekimae No. 4 in the centre of Osaka near JR Osaka station. It is connected to JR Osaka and other subway stations via a recently renovated underground shopping arcade which contains a number of retail stores and restaurants. Address 1-1, Umeda, Kita-ku, Osaka-shi, Osaka 1 minute from Kia-Shinchi station of JR Tozai line Sub-market Osaka CBD Property type Office KEY PROPERTY STATISTICS (JULY 2007) Acquisition summary Ownership summary* 100% Purchase price ( billion) 6.0 NOI yield 3.7% Year completed Sep 1979 PML 6.3% * BJT s interest in this property comprises a condominium interest in five floors (7,8,28,30 and 31). BJT s interest is the largest individual lot in the condominium association. Independent valuation Valuer Hiro & Reas Valuation ( billion) 6.01 Direct capitalisation rate 4.5% Terminal yield 5.0% Discount rate 4.5% Property statistics Land area (sqm): 690 (6.7% of 10,342) NRA sqm(tsubo): 8,387 (2,537) Gross passing rent + CAM 16,178 Estimated gross market rent + CAM 17,500 Under-renting 8% Occupancy by area 86% Occupancy by income 85% TENANT SUMMARY Tenant name Tenant industry Lease type % of total rent Lease expiry date Remaining term (years) Nihon Jutaku Ryutsu Real Estate SNC % March Sumitomo Life Insurance Insurance SC 1 7.4% March Novac Construction SC 1 6.0% March Freed Business Support SC 1 5.8% March Sumitomo Real Estate Sales Real Estate SC 1 5.3% March Remaining tenants (44) 61.8% 1. Standard leases cancellable with six months notice 2. A two year lease. The lease is non-cancellable during the term (until March 2008)

6 LOCATION MAPS FOR OSAKA EKIMAE NO. 4 AND NO. 3 O s a k a E k im a e N o.3, N o. 4 Nagoya Kobe O saka Kyoto Subway Midosuji Line Umeda stn. Hankyu Line Umeda Stn. JR Osaka Stn. Subway Tanimachi Line Higashi Umeda stn. Hankyu Grand Buil Osaka Ekimae No.4 Ougimachi Park Hanshin Line Umeda stn. Subway Yotsubashi Line Nishi Umeda stn. JR Tozai Line Kitashinchi stn. Hilton Osaka Osaka Ekimae No.3 Sonezaki street Osaka City office Nakanoshimai Park